/biz/ - Business & Finance

>>30425409
>>30425672
YCC isn't just about the dollar amount
With YCC the FED sets a range the yield of a treasury (likely the 10y and later on other maturities) has to stay in and they will buy as much as needed to maintain the yield in that range
There's trillions of dollars of treasuries outstanding so if institutions wanted, they just just simply start dumping and the FED would buy it which means a flood of (new) dollars enters into the market and goes to these institutions
That's already an issue and will cause inflation in things those dollars would flow into: equities, properties and eventually though lending other parts of the economy
The bigger problem is that if institutional holders decide to cash out trillions of treasuries the reason behind that would likely also mean they want to (at least partially) move away from the dollar, which would weaken the dollar against other currencies. The sentiment that made institutions dump trillions of USD debt would also push them to want to do trade in currencies other than the USD, as more of the global trade is done in not-USD that means Americans will have to import goods priced in not-USD and because their USD is weaker against that currency, they would now had to pay more USDs for the same goods.

> https://www.investing.com/economic-calendar/globaldairytrade-price-index-1654
Is this really it? Fucking milk and cheese is what is going to be remembered as the first signal of the global inflationary crisis?